8.5 Chrysler LLC Chrysler LLC, the now privately held company sold-off by Daimler-Chrysler, must pay floating rate interest three months from now. It wants to lock in these interest payments by buying an interest rate futures contract. Interest rate futures for three months from now settled at 93.07, for a yield of 6.93% per annum. a. If the floating interest rate three months from now is 6.00%, what did Chrysler gain or lose (don't forget to input minus)

-0.93%

Explanation:

In 3 months time Chrysler will have to pay a yield of 6.93% when in fact 3 months from now, had they not bought the futures, they would have to pay 6%.

This means that they will have overpayed with the futures contract.

The amount in interest they overpayed by can simply be calculated as,

= Floating Rate 3 months from.now - Effective yield on Futures contract

= 6% - 6.93%

= -0.93%

Chrysler made a loss of (0.93% )

step 1: create a plan

step 2: inventory facility equipment/assets

step 3: create preventive maintenance procedures

step 4: create preventive maintenance schedules

step 5: train your maintenanceteam

step 6: analyze – adjust - improve

or

step 1 – pm procedure design: doing the effective things

step 2 – pm procedure scheduling: efficient use of people and resources

step 3 – pm lubrication engineering

step 4 – pm training: back on the chain gang

step 5 – pm program management plan

step 6 – communicate, communicate, communicate

answer; only identify and interpret trends in the marketplace;